👋 Hey Reader,

With the new presidential term underway, there’s a lot of talk about economic uncertainty—possible federal spending adjustments, market volatility, rising costs, and shifts in government aid. Whether you’re feeling the impact already or just trying to prepare, now is the time to get ahead of potential financial changes.

What This Means for You & How to Prepare

The current administration has enacted several executive orders and policy proposals that may influence the economy. For instance, recent tariff threats on Mexico and Canada were used to address border control issues, causing temporary market instability until resolutions were reached. Additionally, the administration has withdrawn from the Paris Climate Accord and proposed significant changes to federal agencies, which could have broad economic implications. apnews.com While the long-term effects remain uncertain, these actions may lead to short-term instability as the public adjusts to new policies. It's crucial to stay informed and prepared, regardless of how these policies may affect you.

Who’s Most at Risk?

• Low-income households relying on government benefits (SNAP, Section 8, etc.)
• Student loan borrowers on income-driven repayment plans
• Investors & savers worried about market fluctuations or rising interest rates
• Federal employees & contractors at risk of furloughs or pay delays

✅ Your Budget May Need Adjusting

If federal spending slows, some government benefits—like SNAP, rental assistance, or student aid—could be delayed or reduced. Meanwhile, inflation and interest rates could affect rent, groceries, and loan payments. Now is a great time to review your budget and make sure it’s aligned with your priorities. (Need help? Grab our Budget Spreadsheet and Free Budget Worksheet to stay on top of it!)

📉 Stock Market Fluctuations: Stay the Course

Markets tend to react to uncertainty, and you may see dips in your investments. But this doesn’t mean it’s time to pull out—historically, markets recover, and staying invested is one of the best ways to build wealth long-term. If you’ve been thinking about starting investing, it’s still a good time to consider index funds or dollar-cost averaging.

What You Can Do:

• If you’re nervous, check your asset allocation—make sure you’re comfortable with your mix of stocks, bonds, and cash. Stocks are typically higher risk, but bonds grow much more slowly. Allocate based on your own comfort levels.
• Consider dollar-cost averaging— DCA is an investing strategy where you invest a fixed amount of money on a regular schedule, regardless of market ups and downs. This helps smooth out risk because you're investing consistently at different prices, instead of buying all at once at a potentially bad time.
• Reassess risk tolerance—if a drop in your portfolio stresses you out, consider shifting some money into lower-risk investments (like bonds or dividend stocks) while still keeping a good portion in stocks for long-term growth.

💰 Federal Aid & Assistance: What You Should Know

If you rely on government aid or are repaying student loans, some programs could experience delays due to budget constraints. Here’s what to look out for:

• Housing & Food Assistance: Section 8 vouchers and food stamps may face longer processing times or funding caps.
• Government Jobs & Benefits: If you're a federal employee or contractor, be aware of potential furloughs or pay delays.
• Student Loans & Income-Driven Repayment Plans: Income-driven repayment plans (IDRs) might experience delays or changes in the way payments are calculated. If you're in one of these plans, keep an eye on any changes that could impact your monthly payment. Be sure to stay updated on possible policy shifts that might affect your repayment terms or the pause on student loan payments that’s currently in effect. Here's what you can do now:
  • Log into studentaid.gov to check your loan servicer and confirm your repayment plan details.
  • Consider extra payments now if you’re in a forbearance period (this is when payments are temporarily paused or reduced), since interest isn’t accruing for some borrowers.
  • Set alerts for policy updates so you’re not caught off guard.

Your Action Plan

✔ Reevaluate your spending & savings – Adjust where necessary. Make sure you're leaving enough room in your budget to be saving and investing for your long-term security. If you don't already have one, this is a great time to build an emergency fund.

✔ Stick with long-term investing – Short-term dips are normal, but your future self will thank you. Even if you see large dips in the market - think of it as getting your favorite stocks on sale. Don't get spooked and pull out. The market will rebound!

✔ Prioritize lowering your taxes – How do you do this legally? Easy - increase your pre-tax investments. If you have a 401(k), traditional IRA, or an HSA/FSA account through your health insurance plan, putting more money into those will not only help you grow your wealth for the future but also lower your taxes right now by lowering your taxable income.
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​✔ Stay informed about your student loans – Be prepared for potential changes to IDR plans or payment terms.

P.S. Want an easy way to rework your budget for these changes? Check out the Budget Spreadsheet or grab the Free Budget Worksheet to stay ahead!

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